The central bank of Thailand will make history as being a pioneer in creating a central bank digital currency. The testing for the digital baht is expected to commence in the first months of next year.
Thailand’s Central bank is about to make history with their recent announcement. The assistant governor of the Central Bank, Vachira Arromdee stated that the bank had everything they needed to test the digital baht by the end of next year. This move will make the regulator a pioneer in the creation of a digital currency regulated by the central bank.
Arromdee also stated that the launch would be spearheaded by the Bank of Thailand, which will be the primary retailer of the digital currency. This is expected to happen in three to five years.
How this will affect the financial system
According to Arromdee, the digital baht will not disrupt the financial system in Thai. To make sure that they fully engage the public with this launch, the Thai Central Bank recently announced the publication of ‘The Way Forward for Central Bank Digital Currency.’ This is a 59-page paper that the regulator is asking the public to read and provide feedback by June 15.
According to Thailand Central bank, the digital currency to be launched will be almost the same as fiat currency. Besides, it will be possible for people to use the currency to make transactions, both online and offline.
The regulator also hinted that the digital currency was easily portable and that it could be used in an innovative financial sector. After it is launched, the Central Bank digital currency can be accessed by all members of the public.
Sethaput Suthiwartnarueput, who is the governor of the Bank of Thailand, stated that the retail digital currency by the central bank would make it possible for the public to enjoy the numerous benefits that come with having access to a digital currency. The public will also be protected from the volatile nature of digital currencies, as this one will be safe, reliable and easily accessible. The move will also create partnership with the private financial sector, as it will pave way for more financial innovations.
Many countries have supported the idea of developing a Central Bank Digital Currency. China is in its final pilot states of its digital Yuan while Asia is also making great strides in the field. However, the United States is still reluctant on the launch of its digital dollar.